INCENTIVES FOR DEVELOPMENT OF AGRIBUSINESS CLUSTERS

The interdependence of rural economies with agriculture along with the changes in the nature of competition in global markets and the challenges of new international financial crisis, determine agriculture firms to move away from traditional types of business activity towards the development of agribusiness clusters. The formation of business networks and clusters is an important means for overcoming the size constraints of agriculture SME’s and succeeding in an ever more competitive market environment through taking advantage of clusters efficiency, flow of information, economies of scale and innovation potential.